Lifeway Foods Reports $63M Q1 Sales Surge, 27.5% Margin Expansion
Lifeway Foods reported record Q1 net sales of $63 million, up 36.7% year-over-year, alongside a 360bps gross profit margin expansion to 27.5% and net income growth to $4.7 million, a 32% increase. The company’s Waukesha facility expansion remains on track for Q1 2027 completion, supporting future capacity and efficiency gains.
1. Q1 Financial Performance
Lifeway Foods achieved record Q1 net sales of $63 million, a 36.7% year-over-year increase, and expanded gross profit margin by 360 basis points to 27.5%, while net income rose 32% to $4.7 million.
2. Facility Expansion Progress
The Waukesha facility expansion is on track for full operation in Q1 2027, which is expected to boost production capacity, improve manufacturing efficiency and establish a key Midwest hub.
3. Growth Drivers and Expenses
Volume-led growth in flagship kefir and high-protein products drove sales gains, but SG&A expenses rose 16.8% due to increased marketing and brand-building investments.
4. Strategic Partnerships
Lifeway is diversifying through new partnerships, including a premium pet food line with Open Farms, targeting health-conscious consumers and expanding market reach.